Due to extensions recently issued by the IRS, the Employee Retention Tax Credit is still available to businesses that issued W2’s during 2020-2021. At up to $26,000 per employee, this can be a substantial amount.
The COVID-19 pandemic has had a widespread effect on businesses nationwide, prompting Congress to establish the Employee Retention Tax Credit (ERTC) program by the CARES Act in 2020 as a response. The ERTC was then further extended and broadened with support through Consolidated Appropriations Act 2021 and American Rescue Plan Act 2021 respectively.
The Employee Retention Tax Credit program, or ERTC, gives eligible employers a tax credit equal to a percentage of qualified wages paid out as wages during pandemic years. It's designed to encourage companies to keep employees on payroll instead of making layoffs or furloughs during such a crisis; for many struggling businesses this support has proven essential during these difficult times.
ERTC provides vital financial assistance to businesses of all sizes. Eligible businesses can claim up to $7,000 per employee per quarter through this program, which can add up to significant savings over time and help businesses keep their doors open despite ongoing economic instability and difficulties.
The Employee Retention Tax Credit program has been extended as follows:
The ERTC filing window for all quarters in 2020, the deadline to apply for the ERC is April 15, 2024, and for all quarters in 2021, the deadline is April 15, 2025. This gives businesses continued access to this essential financial support as they work to rebound from pandemic impacts. Many businesses have welcomed this extension as it has provided for business and equipment upgrades, although there is no restriction on what to spend it on nor any need to pay it back.
To qualify for the ERTC program, businesses must meet specific criteria. Eligible employers include those impacted by COVID-19 who had to suspend operations in full or partially or experienced significant decline in gross receipts compared with similar periods in previous years; also included are startups launched after February 15, 2020.
Businesses may claim the ERTC tax credit on their quarterly filings and, for maximum effectiveness, should consult with a tax professional who will guide them through the application process and answer any queries that arise during this process.
The ERTC program has proven an indispensable aid for businesses during the COVID-19 pandemic. Millions of American workers remain employed and businesses can draw upon much-needed financial support through this vital program. As we face future challenges from this pandemic, the ERTC will remain pivotal in supporting both workers and employers across the United States.
For more information on the ERTC program and how to apply, visit https://myrefund.net or contact Mike Azzara of ERTC Credit Service at (810) 553-6911.
Release ID: 589201